Copper......
futures are trading in a tentative manner as global copper prices continued to feel the pressure of weak Chinese demand. The global equities also mostly slipped today amid flat overnight cues from the US equities and COMEX Copper continued to ease from its six-week highs. The metal is quoting down 0.36% at $3.1740 per pound in the electronics trading right now.
China's government has ordered companies to close factories in 19 industries where overproduction has led to price-cutting wars, affirming its determination to push ahead with a painful economic restructuring despite slowing growth. The industry ministry issued orders late Thursday to more than 1400 companies to cut excess capacity that has led to financial trouble for manufacturers. It also applies to producers of copper and glass and requires some companies to close outright.
China's manufacturing activity slowed to an 11-month low in July, the first evidence of the Asian economic giant losing further momentum in third quarter. In a survey published today, British banking giant HSBC said its preliminary purchasing managers' index (PMI) hit 47.7 this month, down from a final 48.2 in June and the lowest since August. The index tracks manufacturing activity in China's factories and workshops and is a closely watched gauge of the health of the economy. A reading below 50 indicates slowdown, while anything above signals expansion.
The growth in the second largest economy in world has slipped to decade low of around 7.5% and has kept a lid on copper prices over last one and half years. Rising inventories and a surplus in global market have also had a depressing effect. ICSG has reported earlier this week that the world copper markets were in surplus of 50000 tonnes in April 2013. After making seasonal adjustments, the Copper markets were in production surplus of 106000 tonnes. The world copper markets were in surplus of 266000 tonnes in the first four months of 2013.
Caterpillar Inc released disappointing second-quarter earnings on Wednesday. The industrial giant stated that it expects the global economy to grow by just a little more than 2% in 2013, slowing slightly from a pace of around 3% last year. Recovery from the financial crisis in 2009 has been very slow by historic standards. Governments and central banks have consistently overestimated inflation problems and underestimated the need for economic growth, says the company.
Copper gained mildly yesterday, cutting losses amid dollar weakness but the rise was capped amid flat US stock markets and a not very impressive data. Orders for big-ticket US manufactured goods rose 4.2 per cent in June, which was higher than expected, but the increase was driven by transportation equipment orders, a typically volatile item. The MCX Copper futures are trading in a tight range today. The counter is quoting at Rs 415.20, down Rs 2.30 per kg on the day with a massive 8% increase in the open interest.
MCX Copper
China's government has ordered companies to close factories in 19 industries where overproduction has led to price-cutting wars, affirming its determination to push ahead with a painful economic restructuring despite slowing growth. The industry ministry issued orders late Thursday to more than 1400 companies to cut excess capacity that has led to financial trouble for manufacturers. It also applies to producers of copper and glass and requires some companies to close outright.
China's manufacturing activity slowed to an 11-month low in July, the first evidence of the Asian economic giant losing further momentum in third quarter. In a survey published today, British banking giant HSBC said its preliminary purchasing managers' index (PMI) hit 47.7 this month, down from a final 48.2 in June and the lowest since August. The index tracks manufacturing activity in China's factories and workshops and is a closely watched gauge of the health of the economy. A reading below 50 indicates slowdown, while anything above signals expansion.
The growth in the second largest economy in world has slipped to decade low of around 7.5% and has kept a lid on copper prices over last one and half years. Rising inventories and a surplus in global market have also had a depressing effect. ICSG has reported earlier this week that the world copper markets were in surplus of 50000 tonnes in April 2013. After making seasonal adjustments, the Copper markets were in production surplus of 106000 tonnes. The world copper markets were in surplus of 266000 tonnes in the first four months of 2013.
Caterpillar Inc released disappointing second-quarter earnings on Wednesday. The industrial giant stated that it expects the global economy to grow by just a little more than 2% in 2013, slowing slightly from a pace of around 3% last year. Recovery from the financial crisis in 2009 has been very slow by historic standards. Governments and central banks have consistently overestimated inflation problems and underestimated the need for economic growth, says the company.
Copper gained mildly yesterday, cutting losses amid dollar weakness but the rise was capped amid flat US stock markets and a not very impressive data. Orders for big-ticket US manufactured goods rose 4.2 per cent in June, which was higher than expected, but the increase was driven by transportation equipment orders, a typically volatile item. The MCX Copper futures are trading in a tight range today. The counter is quoting at Rs 415.20, down Rs 2.30 per kg on the day with a massive 8% increase in the open interest.
Source by Commodity Insights
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